Bill Text: CA AB2282 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Rental housing: large-scale buy-to-rent investors: data collection.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2016-11-30 - Died on Senate inactive file. [AB2282 Detail]

Download: California-2015-AB2282-Amended.html

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BILL NUMBER: AB 2282	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 12, 2016
	AMENDED IN ASSEMBLY  APRIL 4, 2016

INTRODUCED BY   Assembly Member Calderon

                        FEBRUARY 18, 2016

   An act to add Section 65009.5 to the Government Code, relating to
housing.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2282, as amended, Calderon. Rental housing: large-scale
buy-to-rent investors: data collection.
   Existing law, the Planning and Zoning Law requires cities and
counties to prepare and adopt a general plan for their jurisdictions
that contains certain mandatory elements, including a housing
element. Existing law requires the housing element to include, among
other things, an inventory of land suitable for residential
development and  to  make adequate provision for the
existing and projected needs of all economic segments of the
community. Existing law states legislative findings declaring that
the preservation and enhancement of opportunities for homeownership
are beneficial to the well-being and prosperity of the people of the
state.
   This bill would require the Department of Business Oversight to
design and implement a registration program for the purpose of
registering  and monitoring large-scale buy-to-rent investors and
analyzing the impacts they are having on California's real estate
market.   owners of single-family homes who specifically
intend to use the property as a rental property more than
intermittently. The bill would require the Department of Housing and
Community Development to obtain information on the number of
single-family dwellings owned by large-scale buy-to-rent investors,
as defined, in postal ZIP Code areas in California.  The
bill would require the Department of Business  Oversight and
the Department of Housing and Community Development,  
Oversight,  in  carrying out these duties, 
 designing the program  to consider methods  that,
among other things, collect data in a way that protects the privacy
of homeowners and tenants, organize data to a level that provides
information on the number of single-family homes that are owned and
operated as rental properties more than intermittently in each postal
ZIP Code area in the state, and make that information publicly
available on the relevant department's Internet Web site. 
 to require large-scale buy-to-rent investors to renew
registration of their rental property on an annual basis, including
new and current single-family home rentals that they own or in which
they have invested.  The bill would also prohibit large-scale
buy-to-rent investors, as defined, from placing a bid on a normal
sale of a single-family home, with specified exceptions, for a period
of not less than 90 days after the home has been placed on the real
estate market. The bill would make various findings and declarations
in this regard.  The bill would also require the Department of
Business Oversight, on or before January 1, 2018, to submit to the
Governor and the Legislature a report that includes information
regarding how many large-scale buy-to-rent investors own  
property in the state for the purpose of renting the property which
regions of the state their investment activity is occurring, the
number of single-family homes each large-scale buy-to-rent investor
owns, and an analysis of the potential impacts of their investments,
as specified. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 65009.5 is added to the Government Code, to
read:
   65009.5.  (a) (1) It is the intent of the Legislature in enacting
this provision to monitor the investment activities of large-scale
buy-to-rent investors in the State of California  who
  that  have, since October 2013, designed a
mortgage-based security supported by the revenue from single-family
rental properties.
   (2) The emergence of this type of security is likely to grow and
scale institutionally owned single-family rental homes to a level
that is, at this time, unknown. However, with home prices currently
approaching record highs, yet with homeownership at historic lows, it
is important to understand the size and scope of investor activity
of single-family homes and the impacts it has on the real estate
market in California.
   (3) It is in the best interest of the State of California to limit
the amount of single-family homes that large-scale buy-to-tent
investors can own in our neighborhoods and communities. Furthermore,
we must protect against the potential displacement of persons
residing in single-family home rentals that is harmful not only to
the persons displaced by these practices but also to the entire
community in which those persons reside.
   (4) Large-scale buy-to-rent investors own more single-family homes
than any other population in the United States, a market once
dominated by local, private owners.
   (5) Limiting the activity of large-scale buy-to-rent investors can
have a positive impact on the housing market by providing a greater
supply of homes to individual buyers, protect the real estate market
from large fluctuations in home prices, create a stronger sense of
community in our neighborhoods, and defend the American dream of
becoming a homeowner.
   (b)  (1)    The Department of
Business  Oversight   Oversight, with any
assistance that may be offered by county recorders,  shall
design and implement a registration program for the purpose of
registering  owners of single-family homes in California who
specifically intend to use those homes as a rental property more than
intermittently.   and monitoring large-scale
buy-to-rent investors and analyzing the impacts they are having on
California's real estate market.  In designing this program, the
department shall consider methods to  accomplish all of the
following:   require large-scale buy-to-rent investors
to renew registration of their rental property on an annual basis,
including new and current single-family home rentals that they own or
in which they have invested.  
   (A) Collect data in a way that protects the privacy of homeowners.
 
   (B) Aggregate that data to a level that provides information on
the number of single-family homes that are owned and operated as
rental properties more than intermittently in each postal ZIP Code
area in this state.  
   (C) Provide information regarding how many of the property owners
are institutional investors in single-family homes compared to
private owners.  
   (D) Require property owners to renew registration of their rental
property on an annual basis through an online system. 

   (E) Make the data available on its Internet Web site. 

   (c) On or before January 1, 2018, the department shall submit to
the Governor and the Legislature a report that includes, but is not
limited to, both of the following:  
   (1) Information regarding how many large-scale buy-to-rent
investors own property in the state for the purpose of renting the
property, and which regions of the state their investment activity is
occurring.  
   (2) The number of single-family homes each large-scale buy-to-rent
investor owns, and an analysis of the potential impacts their
investments are having on the local real estate market, including the
price of homes, the ability of individual home buyers, specifically
those who need financing, to compete against the large-scale
buy-to-rent investors, the length of time large-scale buy-to-rent
investors are holding their property as a rental, and how many homes
they are selling each year.  
   (2) 
    (d)  A large-scale buy-to-rent investor shall not place
a bid on a normal sale of a single-family home that is not a short
sale, foreclosure sale, or real estate owned property for a period of
not less than 90 days after the home has been placed on the real
estate market. 
   (c) The Department of Housing and Community Development shall
obtain information on the number of single-family dwellings owned by
large-scale buy-to-rent investors in postal ZIP Code areas in
California and make that information publicly available on its
Internet Web site, organized by ZIP Code area. In collecting this
information, the department shall consider methods to accomplish all
of the following:  
   (1) Collect data in a way that protects the privacy of tenants.
 
   (2) Organize the data to a level that provides information on the
number of single-family homes that are owned and operated as rental
properties more than intermittently in each postal ZIP Code area in
this state.  
   (3) Provide information regarding how long the property has been
owned by a large-scale buy-to-rent investor.  
   (4) Make the data available on its Internet Web site. 

   (d) 
    (e)  As used in this section, "large-scale buy-to-rent
investor"  and "institutional investor in single-family homes"
mean   means  a publicly traded company devoted to
holding and managing single-family home rental properties, either on
behalf of clients or on for itself, and which owns more than 10
single-family homes during a calendar year. 
   (f) (1) The requirement to submit a report imposed under
subdivision (c) is inoperative on January 1, 2022, pursuant to
Section 10231.5 of the Government Code.  
   (2) A report submitted pursuant to subdivision (c) shall be
submitted in compliance with Section 9795 of the Government Code.